The Wash Sale Rule
A less well-known rule that can affect the tax deduction of losses from the sale of stock is the wash sale rule, enacted under Internal Revenue Code Section 1091. This article discusses the application of the wash sale rule.
Pen Pal Gary Stern
Pen Pal Gary Stern, of LHBR Consulting, LLC: Gary practiced law for 34 years. Since his retirement from practicing law, Gary has provided business and wealth planning consulting in the areas of estate planning, asset protection planning, tax planning, series limited liability companies, limited liability companies, corporations, and other business entities, securities, real estate, intellectual property, probate, immigration, business transactions, international business, and contracts. Gary is a graduate of Cornell University and University of Chicago Law School. Gary can be reached by e-mailing to [email protected], or at 224-515-1055.
All Operating Agreements Are Not Created Equal
It has been stated that the limited liability company has become more popular than the corporation as the basic form of entity to do business in the United States. A critical document with any limited liability company is the operating agreement. When an operating agreement for a limited liability company fails to fully cover the six key issues described here in accordance with the understandings of the limited liability company’s members and managers and applicable law, such operating agreement is a poorly-drafted, inadequate operating agreement.
President Trump’s “Gold Card” Immigration Proposal – Does it Provide a Viable Path to Obtain a Green Card?
President Trump announced a new immigration proposal – what he referred to as a “gold card”. The “gold card” green card program would potentially replace the existing EB-5 immigration program. Although it has been reported that the Trump administration may be considering combining the “gold card” green card proposal with the EB-5 investment program in some manner.
The SLAT – A Possible New Estate Tax Planning Technique for Married Couples
Effective estate tax planning often involves two competing objectives. On one hand, there is an objective to remove assets from a person’s taxable estate, so that estate tax liability can be reduced on such person’s death. On the other hand, there is an objective to retain the income and principal from a person’s assets, so that such person’s activities are not disrupted during such person’s lifetime.
The Continuing Saga of “BOIR/FinCEN” Reporting
With the Supreme Court’s decision to stay the “Texas Top Cop Shop December 3” injunction, the Supreme Court’s decision only related to the nationwide injunction issued in the Texas Top Cop Shop case; it did not at all relate to the nationwide injunction issued in the Smith case. As a result, as of January 24, 2025, the general advice remained that reporting companies that had not yet made filings with FinCEN to comply with the BOIR requirement of the CTA should hold off on doing so.
Loper Bright Enterprises – Supreme Court Issues Important Decision on Administrative Branch Power
In school, we learn that there are three branches of the United States government – legislative, executive, and judicial. In fact, many commentators believe that there is a fourth branch – the administrative branch. Carved out of the executive branch, the administrative branch includes cabinet and other executive departments and independent agencies.
Trump’s Tax Proposals
President-elect Trump has proposed various new specific exemptions from income tax liability. First, he would exempt tips from income tax liability. Second, he would exempt overtime pay from income tax liability. Third, he would exempt Social Security benefits from income tax liability. There is no guarantee that some or any of President-elect Trump’s tax proposals will be enacted into law.
Private Foundations – Know the Advantages and Benefits But Understand the Possible Penalties
Charitable activities are favored under the Internal Revenue Code. The income of a charitable entity can be subject to favorable income taxation, and transfers to a charitable entity can realize income tax and estate tax deductions. One type of charitable entity is a private foundation. This letter refers to the “private non-operating foundation.”
How to Avoid FinCEN Reporting
There are two types of reporting companies – “domestic reporting companies” and “foreign reporting companies.” It is important to remember that reporting companies that were formed or registered to do business in the United States on or before December 31, 2023 are required to comply with applicable “FinCEN” reporting by January 1, 2025 and reporting companies that were formed or registered to do business in the United States during 2024 are required to comply with applicable “FinCEN” reporting within 90 calendar days after receiving notice of such formation or registration.
Connelly v. United States – An Important Supreme Court Estate Tax Valuation Case
“Buy sell” agreements often are funded by life insurance policies. Life insurance proceeds can affect the “estate tax” valuation of a deceased business owner’s ownership interest. And can have material implications for the terms of “buy-sell” agreements, business valuations, and other estate tax liability and estate planning issues.
Moore v. United States – Wealth Taxation Is Still Possible
Relative to its decisions concerning other areas of the law, the United States Supreme Court generally does not issue many decisions concerning tax law. Thus, when the Supreme Court does issue a tax decision, it definitely is noteworthy and deserves attention.
SUCCESSION IN DISABILITY SITUATIONS
Succession is an important issue in estate planning. Usually, succession is discussed in terms of an asset owner’s or business owner’s death. Who should succeed me as owner and manager of my assets or business on my death? A less often discussed, but also significant, issue is succession in disability situations.